As the name would suggest, a withholding tax in general is a tax withheld on income derived by taxpayers either through trade or in the practice of their profession. This is further subdivided into several types, specifically: Withholding tax on compensation This is probably the most familiar type of withholding tax, which is withheld from […]

In our post Starting the Year Right: Meeting Your Annual Compliance Requirements, we listed the books of accounts as one of the requirements of the Bureau of Internal Revenue (BIR) for businesses. These books, which you have to register with the BIR, list all the transactions of your business. Registration of these is done when […]

As a general rule, any income earned within the Philippines will be taxed by the Bureau of Internal Revenue (BIR). But as with any rule, there are certain exemptions to the filing of income tax returns. In this article, we discuss who are required to file these, those who aren’t, those who are completely exempted […]

In a previous post, we talked about allowable deductible expenses, which ranged from business-related expenses to donations to charitable institutions. We also mentioned that as a taxpayer, you have the option between two deduction schemes: itemized deduction and optional standard deduction OSD. So which one is right for your business? It depends on a wide […]

The Bureau of Internal Revenue (BIR) allows businesses to deduct certain expenses from their taxable income. As a rule of thumb, most of these allowed expenses should be relevant and necessary to business activities, while including others such as social security contributions and donations to charitable institutions. When applying deductible expenses, you may choose between […]

The new year is a fantastic opportunity for us to pursue new ventures and improve upon the work that we did the previous year. For businesses, it also means dealing with the annual compliance requirements of various government agencies, from the local government to the Bureau of Internal Revenue (BIR). The timelines and requirements vary […]

After completing the registration of Business Name in DTI and securing the business permit from the Local Government Unit (LGU), the next step that you shall undertake is registration with The BIR. Once registered with BIR, you may apply to print your invoices and receipts which are vital in operating your business. Requirements: Accomplished BIR […]

Securing a business permit from designated Local Government Unit (LGU) is quite complex and requires a lot of documents. Procedures in acquiring the documents vary depending on city municipality where your business is situated. Requirements: Completely filled-out and notarized Business Permit Application Form Locational Clearance Barangay Clearance If applicant property owner: Latest Real property Tax […]

Barangay Clearance is a prerequisite document in acquiring a Mayor’s Permit. It is obtained from the barangay where your business is located. Getting a copy is easy by follow these simple steps: Requirements: Filed-out application form Recent Community Tax Certificate (CTC)/Cedula Payment for fees STEPS AND PROCEDURES: Step #1: Go to your designated Barangay Hall […]

The “first step” in starting up a business is to create a distinctive business name that will convey the uniqueness of product and services and will mark on potential clients. This business name will reflect on all business documents when dealing with clients or government agencies. If you are a single proprietor who opted to […]